Stock Market Crash And Market Bubbles

In this lesson, the focus is on stock market crashes and market bubbles. The lesson covers three main objectives – an introduction to fear and greed cycles, understanding Warren Buffett’s opinion on market psychology, and the difference between accumulating shares and trading assets. The lesson uses relatable scenarios to illustrate the impact of instincts and emotions on market behaviour. The importance of basing decisions on facts and knowledge is highlighted. The lesson also provides a comparison of a value-based approach and an emotional-based approach to investing. The difference in outcomes for the two approaches is demonstrated using the example of two traders, Amy and Trevor. The lesson concludes by emphasising the importance of calculating intrinsic value and making decisions based on it in the long term.